Phillips 66 (NYSE: PSX) launched an open season for a proposed crude oil Delaware Basin pipeline system in West Texas with 130,000 barrels per day (bbl/d) of anticipated initial throughput capacity, the company said March 16.
The Reeves-Odessa Origination (Rodeo) Project is slated for completion in second-half 2018. The Houston-based company said it expects ultimate potential throughput capacity of up to roughly 450,000 bbl/d, depending on shipper commitments in the open season.
As proposed, the Rodeo Project will consist of a pipeline system for crude oil transportation for producers and other shippers in the Delaware Basin, with origination stations in Reeves, Loving, and Winkler counties as well as Odessa in West Texas.
The pipeline system will include destination options at:
- Wink, Texas;
- Phillips 66 Partner LP’s (NYSE: PSXP) Odessa station;
- New terminal to be built near Odessa as part of the Rodeo Project; and
- Midland, Texas.
The open season will commence on March 24. Terms and conditions include options for shippers to obtain committed shipper status through either an acreage dedication or a transportation and deficiency commitment, the company said.